How Is AI Impacting Ecommerce?
Blog
Jul 18
Marketing teams, especially those in digital marketing, have been leveraging artificial intelligence (AI) for several years to gain deeper insights into their target audiences. Using AI to grow your ecommerce brand is like a dream come true for many marketers. AI can create targeted, personalized content and improve the way your business operates.
With continuous advancements in AI, its potential to help ecommerce businesses achieve higher sales and marketing goals by gathering and synthesizing precise customer insights is immense. According to a recent AI survey by Influencer Marketing Hub, at least 44% of survey participants report using the new technology, and this number is expected to grow. While platforms may vary in the specific AI tools they employ, there’s no denying that AI is making ecommerce more efficient and can significantly impact your marketing strategy.
Why Using AI Can Benefit Your Business
There are many benefits to using AI in your ecommerce business. It can:
Create more marketed content
One of the standout strengths of AI is its capability to perform in-depth data analysis on individual customers. Leveraging this data, AI can generate tailored follow-ups and enhance the shopping experience by offering more personalized interactions.
Increase your customer retention
AI can send your customers the information or “nudge marketing” they need to make a final decision to purchase a product. An example is getting a notification that a shopping cart is ready to be checked out even though the customer left the webpage the day before, or an automatic email about a restocked shoe brand the customer searched for a week ago. The small nudges keep things convenient for the user and humans are more likely to change their behavior when it’s convenient.
Make your process more automatic
AI frees up some of your operational energy by taking on those mundane tasks that historically needed your time. In turn, your service can improve and often gets quicker and more accurate (think chatbots helping a customer narrow down the right kind of snowboard to buy on your outdoor sports equipment site). This tactic typically elevates the shopping experience, leaving you with a happier customer.
How Will AI Change Ecommerce?
Our blog discussed the top 12 categories where marketers can leverage AI right now. From digital ads and content marketing to predictive analytics, each AI tool has the potential to revolutionize the landscape of ecommerce and leave a significant impact. This digital transformation underscores the immense power and versatility of AI in marketing.
Costs could lower
With AI taking on roles such as a helpful customer service representative or a personalized search engine on a company’s website, customers can find answers more quickly and make faster decisions. This not only enhances the user experience but also significantly lowers the business’s operational costs.
Ecommerce could go through growing pains
AI is still fairly new in the tech world. That means businesses need some time to decide which AI tool delivers what they need. This is similar to the argument that you should be deliberate with what social media tools and sites you use because they help your business — not just because they exist. Don’t incorporate AI just because it’s the hip thing to do. Be strategic. And whatever tool you choose to use, make sure you use it ethically.
Businesses could see more powerful analytics
AI’s ability to measure data could produce more powerful predictive analytics. This means there’s a higher success rate of predicting who wants to buy what in the future, and that creates a more strategic marketing plan for you to use. This not only streamlines your marketing efforts but also reduces waste. Finally, using such predictive analytics increases customer loyalty because the impact is that they feel important and valuable to your company.
Leveraging AI in ecommerce is a game-changer for modern marketers. This advanced technology enables the creation of targeted, personalized content and can improve the way your business operates. Numerous brands have already adopted AI, and this trend shows no signs of slowing down. Despite varying opinions on which AI tools are best, there’s no denying that ecommerce is becoming more efficient thanks to AI. By reshaping industry practices, AI holds the potential to significantly boost profitability. Given the widespread use of AI among ecommerce brands, incorporating AI-driven strategies into your business is not just beneficial—it’s strategic.
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